FX Morning Update October 18, 2011
USD/CAD Open: 1.0235-39 Overnight Range: 1.0212-1.0262
The Canadian dollar traded sideways in overnight trading. The loonie lost ground yesterday as sentiment soured after German official highlighted that the eurozone issues would take longer to resolve. Overnight, China’s GDP data was worse than expected as was German economic sentiment data. Oil is at $86.07 and gold is at $1,643. NY futures are negative. Today, PPI data is released.
The short term Canadian dollar technicals remain negative while above parity. For today, USD resistance is at 1.0250, 1.0373, and 1.0450. Support is at 1.0213, 1.0131, 1.0057 and 1.0005.
A change of tide yesterday as risk-off was the theme driven by traders questioning the path to success in the eurozone recapitalization plan and profit taking of recent gains. The single biggest driver continues to be the eurozone recapitalization plan and outlook, which has been driving risk sentiment, equity markets, and oil prices, and the loonie follows as a result. Look for US corporate earnings to help guide sentiment along with European headlines.
Today’s Range: 1.0150 – 1.0290
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By Admin | October 21, 2011 | Daily Update | 0 comments